9911796707
TMI BlogReview of recommendation of Dr. L.C Gupta Committee on DerivativesX X X X Extracts X X X X X X X X Extracts X X X X ..... / Corporation. Dear Sir, Sub: Review of recommendation of Dr. L.C Gupta Committee on Derivatives. This is in continuation of SEBI Circular No. FITTC/DC/CIR-1/98 dated June 16, 1998 and Circular No. IES/DC/ 8726/00 dated May 31, 2000 regarding the eligibility criteria, market structure and governance of Derivative Exchange/Segment and their Clearing House/Corporation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o as derivative segment) . 1. Separation of Cash and Derivative Segment of an Exchange and its Clearing House/Corporation. The Dr. L.C Gupta Committee on Derivatives had permitted exiting stock exchanges having cash trading to trade in derivative contracts through a separate segment with separate membership. Henceforth, the derivative segment of an exchange and its Cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The separation, if any, as regard the functional, operational and administrative modalities shall be at the discretion of the Exchange. The cash and derivative segment of an Exchange may have common personnel, trading terminal and infrastructure. 3. The condition of mandatory appointment of a Chief Executive Officer (CEO) of the derivative segment and its clearing house / corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dentifying the top members (in terms of level of activity) to be taken up for compulsory inspection. The percentage of remaining members to be inspected selected on a sampling basis. Mechanisms should ensure that active members do not go un-inspected for several years in succession. The inspection policy and plan for the year shall be submitted to SEBI for approval. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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